All the following actions represent fiscal policy EXCEPT

A. a reduction in individual income tax rates.
B. an increase in corporate income tax rates.
C. a decrease in government spending.
D. an increase in the money supply.


Answer: D

Economics

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If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning positive economic profits, the firm should anticipate ________.

A) the market equilibrium price to increase B) the market equilibrium price to decrease C) earning economic profits indefinitely D) the market supply to decrease

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The marginal cost to society of reducing pollution increases with the increased use of pollution abatement because

A) of the diminishing marginal utility of abatement. B) of the reduced demand for abatement. C) of the diminishing returns from abatement. D) of the high cost of abatement.

Economics

Unlike Social Security's pension program, Medicare's funding is anchored in a trust fund

Indicate whether the statement is true or false

Economics

The cost disease of personal services causes

a. the cost of health care to rise faster than the economy's rate of inflation. b. legislators to blame declining standards of quality at public hospitals on greedy doctors or administrators. c. legislators to propose price controls on insurance. d. All of the above are correct.

Economics